International Brands include Dunhill, Kent, North State Lucky Strike, Pall Mall, Vogue, Rothmans International, Winfield, State Express 555, KOOL, and Viceroy. British American Tobacco does not necessarily own the rights to all of these brands in every nation they are marketed.
British American Tobacco p.l.c. is a tobacco and next generation products company. The Company’s tobacco product range includes cigarettes, fine cut (roll-your-own and make-your-own tobacco) and Swedish-style snus. Its segments include Asia-Pacific, Americas, Western Europe, and Eastern Europe, Middle East and Africa (EEMEA). The Asia-Pacific segment includes its operations in various countries, including Australia, Pakistan, Malaysia, Vietnam, Japan, South Korea, Indonesia, New Zealand and Bangladesh.
The Americas segment includes its operations in various countries, including Brazil, Mexico, Canada, Colombia, Argentina, Chile and Venezuela. The Western Europe segment includes its operations in various countries, including Germany, Denmark, Switzerland, Belgium, France, the United Kingdom, Romania, Spain, Italy, Poland and Croatia/Balkans. The EEMEA segment includes its operations in various countries, including Russia, Ukraine, South Africa, Turkey, Egypt, Nigeria and Algeria.
Altria Group, Inc. is a holding company. The Company’s segments include smokeable products, smokeless products and wine. The Company’s subsidiaries include Philip Morris USA Inc. (PM USA), which is engaged in the manufacture and sale of cigarettes in the United States; John Middleton Co. (Middleton), which is engaged in the manufacture and sale of machine-made cigars and pipe tobacco, and UST LLC (UST), which, through its subsidiaries, including U.S. Smokeless Tobacco Company LLC (USSTC) and Ste. Michelle Wine Estates Ltd. (Ste. Michelle), is engaged in the manufacture and sale of smokeless tobacco products and wine.
Its other operating companies include Nu Mark LLC (Nu Mark), a subsidiary that is engaged in the manufacture and sale of tobacco products, and Philip Morris Capital Corporation (PMCC), a subsidiary that maintains a portfolio of finance assets. Other subsidiaries include Altria Group Distribution Company and Altria Client Services LLC.
Tobacco has been a big business in the United States for more than a century. Whether you’re interested in cigars, pipe tobacco, chewing tobacco, or traditional cigarettes, tobacco stocks have been wildly profitable as well as highly controversial.
There are only a handful of tobacco stocks that trade on major U.S. exchanges, most of which have direct ties to the domestic market for cigarettes and other tobacco products. That’s not to say that foreign competitors outside the U.S. market don’t have influence over the global industry, but because of the difficulty that many investors have in investing directly in stocks whose shares aren’t found on the New York Stock Exchange or the Nasdaq Stock Market, the following nine tobacco stocks are more accessible for the average U.S. investor.
|Philip Morris International (NYSE: PM)||$125.4 billion||192%|
|Altria Group (NYSE: MO)||$92 billion||395%|
|British American Tobacco (NYSE: BTI)||$85.3 billion||112%|
|Universal Corp. (NYSE: UVV)||$1.57 billion||176%|
|Vector Group (NYSE: VGR)||$1.36 billion||171%|
|Turning Point Brands (NYSE: TPB)||$1.02 billion||417%*|
|Standard Diversified (NYSEMKT: SDI)||$305 million||11%*|
|22nd Century Group (NYSEMKT: XXII)||$251 million||51%*|
|Pyxus International (NYSE: PYX)||$130 million||(60%)|
Largest publicly traded tobacco company in the world
British American Tobacco (BAT) is a British multinational cigarette and tobacco manufacturing company headquartered in London, United Kingdom. It is the largest publicly traded tobacco company in the world. BAT has a market-leading position in over 50 countries and operations in around 180 countries.
There is perhaps no more hated industry in market history than tobacco. But since 1926, no industry has delivered better total returns, and on a risk-adjusted basis, tobacco is #2.
Over the past 33 years, Altria and British American have delivered 18% and 14% CAGR total returns, respectively, “smoking” the S&P 500 while offering generous, recession-resistant and exponentially growing dividends.
Both companies have wide moat businesses, with proven track records of adapting to an endless stream of “existential” crises, which is why I recently bought both for my retirement portfolio.
From today’s valuations, 20% historically undervalued for MO and 25% for BTI, these defensive, high-yield blue chips can realistically deliver 12% to 20% CAGR and 19% to 25% CAGR total returns over the next five years, respectively.